Bitcoin halving plays a crucial role in controlling the cryptocurrency’s supply by systematically reducing the rate at which new coins enter circulation. Approximately every four years (or every 210,000 blocks), the block reward given to miners is cut in half. Initially set at 50 BTC per block in 2009, it dropped to 25 BTC in 2012, 12.5 BTC in 2016, 6.25 BTC in 2020, and 3.125 BTC after the 2024 halving. This process will continue until around 2140, when the last Bitcoin is mined, capping the total supply at 21 million.

By slowing the issuance of new coins, halving ensures scarcity, mimicking the extraction of finite resources like gold. Unlike fiat currencies, which can be printed indefinitely, Bitcoin’s predictable and diminishing supply makes it inherently deflationary. Each halving reduces inflationary pressure, theoretically increasing Bitcoin’s value if demand remains steady or grows. Historically, reduced supply post-halving has contributed to bull markets, as seen in 2013, 2017, and 2021.

Ultimately, halving enforces Bitcoin’s hard-capped supply, reinforcing its appeal as "digital gold"—a store of value immune to arbitrary inflation. This mechanism ensures long-term price stability and scarcity, key to its economic model.